Market Insights

Headlines
EUR/USD drops below 1.4000 as debt crisis escalates USD confidence wanes after Obama debt ceiling press conference Aussie falls below 1.0700 as risk appetite dissipates Commodities generally flat, but gold surges on global debt problems Dow loses 1.2% as European markets tumble BoJ decision due today but no change expected

12 July 2011

AUD/USD
Resistance 1.0660 Support 1.0550 Market Sentiment

Bearish The Aussie has broken below support at 1.0600 and this now suggests a move back to 1.0550 is on the cards. Traders will be looking for any move back to 1.0660 to take new shorts.

XAU/USD
Resistance 1555/60 Support 1535 Market Sentiment

Bullish Gold pushed right up to the top of the range overnight thanks to ongoing global debt worries. From here, key resistance is seen near 1560 and any break of this level could see a move back toward the all-time highs at 1575.

EUR/USD
Resistance 1.4100 Support 1.3970 Market Sentiment

Bearish The Euro has broken sharply below the triangle formation that has defined trade for the last few weeks and this now looks severely bearish. Any move back to 1.4100 is likely to attract sellers, while a break below 1.3970 is also likely to trigger further selling.

GBP/USD
Resistance 1.5950 Support 1.5870 Market Sentiment

Bearish GBP/USD has now broken below support at 1.5920 and is now trading in a tight band at lower levels. Traders will be waiting Bearish for the next break lower, with a low reading in tonights CPI at 6.30pm having the potential to push prices lower.

USD/JPY
Resistance 80.40 Support 80.00/79.70 Market Sentiment

Bullish The USD/JPY has now broken below the flag-shaped trading formation and this looks more bearish for the pair. That said, we are very close to support and traders will need to see a clear break below 79.70 before turning more bearish.

SILVER
Resistance 36.80 Support 35.70 Market Sentiment

Bullish Silver has pulled back towards the support levels at the upper end of the broad triangle and from here traders will be looking to take new long positions. Precious metals have seen a strong couple of weeks and a pull back to major support will see traders looking to get on board.

USD/CHF
Resistance 85.50 Support 83.30 Market Sentiment

Rangebound

The USD/CHF remains in its trading range and is currently trading near the lower end of the range at 83.30. Traders could be looking to buy USD/CHF at support around 83.30 in the expectation of a move back toward resistance. A break of 83.30 will be bearish.

GBP/JPY
Resistance 128.50 Support 127.50 Market Sentiment

Bearish The GBP/JPY has broken below support at 128.30 and this now appears even more bearish for the sterling-yen. The market will be waiting for a move back to 128.50 to take new shorts. Tonights UK CPI numbers will be high impact.

AUD/JPY
Resistance 86.30 Support 84.70 Market Sentiment

Bullish The Aussie-yen has now pulled back to major support at the top end of the triangle formation and this is usually seen as a change to take new longs. However, the move back to support was the result of heavy selling, and any break below 84.00 will be seen as bearish.

OIL
Resistance 96.00 Support 94.00 Market Sentiment

Bearish Crude has been hit by selling over the last couple of sessions and the markets attention now moves to support at 94.00. A break below 94.00 sets up a move to 93.00.

Economic Calendar
F/Cast
AUD: NAB Business Confidence JPY: Rate Decision EUR: French CPI EUR: German Final CPI

Last
6 0.1% 0.1% 0.1% GBP: CPY y/y GBP: Trade Balance GBP: CB Leading Index USD: FOMC Minutes

F/Cast
4.5% -7.3b

Last
4.5% -7.4b 0.4%

0.1% 0.1% 0.1%

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